hich of the following would not be acceptable as a measure of basic investment risk? a)Expected Return b) Range of Returns c)Variance of Returns d)Standard Deviation of Returns

Unsystematic risk: is compensated for by the risk premium. is measured by standard deviation. is related to the overall economy. can be effectively eliminated by portfolio diversification. is measured by beta.

Is the portfolio risk the weighted average of the variance or covariance?

What does Jensen's alpha measure? a. An investor's reward in proportion to their assumption of systematic risk b. The abnormal return of an asset, defined as the degree to which its actual return exceeds that predicted by the capital asset pricing model c. The degree to which diversifiable risk is eliminated d. How much reward an investor is getting for each unit of risk assumed

According to modern portfolio theory, pair-wise covariance is more important to total portfolio risk than individual security variance. True or False

How does standard deviation and variance affect portfolio risk, more so than expected return?

The Capital Asset Pricing Model (CAPM) describes a relationship between the expected return of,,,  a)An individual share and its variance risk b)An individual share and its standard deviation risk c)An individual share and its undiversifiable risk d)An individual share and its diversifiable risk

A financial risk is not possible to evaluate with a. Standard deviatiom  b. Mean value c. Coefficient of variability  d. Variability

The Sharpe ratio Select one: O is computed using idiosyncratic risk only is computed using systematic risk only Ois maximized for the risk-free asset is the highest for a minimum variance portfolio is the same along the capital market line

The probability distribution of a less risky return is more peaked than that ofa riskier return. What shape would the probability distribution have for (a)completely certain returns and (b) completely uncertain returns?